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VANGUARD INTRODUCES INDEX FUND TO TRACK ENTIRE U.S. EQUITY MARKET

 VANGUARD INTRODUCES INDEX FUND TO TRACK ENTIRE U.S. EQUITY MARKET
 VALLEY FORGE, Pa., March 18 /PRNewswire/ -- The Vanguard Group of Investment Companies today announced the introduction of an index fund that seeks to match the entire U.S. equity market.
 The new Total Stock Market Portfolio will aim to replicate the investment performance of the unmanaged Wilshire 5000 Index, the broadest stock index in the United States. It comprises all securities regularly traded on the New York Stock Exchange, the American Stock Exchange, and in the NASDAQ Over-The-Counter Market.
 "Along with the traditional advantages of indexing, namely, broad diversification and relative performance predictability, the Total Stock Market Portfolio offers individual and institutional investors, for the first time, a convenient and cost-efficient way to participate in the entire U.S. stock market through a single account," said Vanguard Chairman John C. Bogle.
 The minimum initial investment for the Portfolio will be $3,000 ($500 for IRAs and custodial accounts), and shares will be offered without sales commissions, redemption fees, or 12b-1 plan fees. The portfolio is expected to maintain an expense ratio (expenses as an annual percentage of total net assets) of 0.22 percent -- less than one-sixth the 1.34 percent average expense ratio of general equity funds (Lipper Analytical Services data). A 0.25 percent transaction fee will be charged on all purchases to help defray the costs of buying the securities of small and medium-sized companies. Beginning in 1993, the portfolio will also charge a $10 annual account maintenance fee to offset the cost of maintaining smaller accounts.
 A subscription period for the Total Stock Market Portfolio will run from March 16, 1992, to April 27, 1992. During this period, the portfolio will invest in money market instruments so that a large pool of cash can be accumulated to invest on April 27, thus minimizing transaction costs. There will be no stock market exposure during the subscription period, nor will the 0.25 percent transaction fee apply.
 The Vanguard Group of Investment Companies, headquartered in Valley Forge, has net assets exceeding $81 billion and manages 65 investment portfolios owned by some 3 million individual and institutional investors. This communication is neither an offer to sell nor a solicitation of an offer to buy fund shares. Such an offer is made by prospectus only, copies of which may be obtained from The Vanguard Group. The prospectus should be read carefully before individuals invest or send money. The prospectus contains more complete information on advisory fees, distribution charges, and other expenses. The Total Stock Market Portfolio is neither sponsored by, nor affiliated with, Wilshire Associates. "Wilshire 5000" is a registered trademark of Wilshire Associates.
 -0- 3/18/92
 /CONTACT: John S. Woerth of The Vanguard Group, 215-669-6224/ CO: The Vanguard Group of Investment Companies ST: Pennsylvania IN: FIN SU:


CC -- PH027 -- 9311 03/18/92 14:18 EST
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Publication:PR Newswire
Date:Mar 18, 1992
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